The UK High Court has ruled that stablecoin Tether (USDT) is property, marking the first time that UK law has ruled on the status of a cryptocurrency after a full trial.
The legal status of Tether was a preliminary question in a case brought by a fraud victim whose stolen cryptocurrencies included USDT. "USDT attracts property rights under English law," said Richard Farnhill, deputy judge of the High Court, in his ruling on September 12.
The judge added that USDT is "a rather unique form of property that does not presuppose an underlying legal right" and can be "the subject of tracing and can constitute trust property like other property."
He noted that "strong authority" showed that the cryptocurrency was property in a 2019 decision of the same court, which was not made at trial. This is also in line with the position of the Law Commission of England and Wales in its 2023 report on digital assets, which labeled it as property. (Cointelegraph)